Apple exits sub-Rs 20,000 category, kills iPhone 4S, 5C in India

Apple's decision to exit the sub Rs 20,000 category in India can be
seen as a move to align its strategy here with that of global standards.

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Saurabh Singh

New Delhi

February 17, 2016

UPDATED: February 17, 2016 13:27 IST

Cupertino major Apple has pulled the plug on the iPhone 4S and 5C in India in a bid to boost the average selling price of its devices and increase profits here, says a new Economic Times report . With the iPhone 4S and 5C no longer in the picture, Apple will hereby exit the affordable smartphone segment -- more precisely the sub Rs 20,000 category -- that has seen the fastest growth in the country in recent times.

While the iPhone 4S has been selling for as low as Rs 12,000, the iPhone 5C has been available for as little as Rs 20,000 for quite some time now. With the iPhone 4S and 5C gone, the company's cheapest phone in India now will be the iPhone 5S that can be purchased at around Rs 24,000. The iPhone 5S saw a significant price drop in December last year as a measure to boost sales. The company will be launching a successor to it -- the iPhone 5SE -- in March. The company will eventually bring the iPhone 5SE to India. When exactly? We don't know yet. Multiple reports however suggest that Apple will likely price it in line with the iPhone 5S. That doesn't mean the iPhone 5SE will be priced at around Rs 25,000 in India though. At the same time the company may not kill the iPhone 5S anytime soon meaning buyers could have the option of a more affordable iPhone (even after the iPhone 5SE arrives) for some more time although there's no official confirmation regarding the same.

Apple's decision to exit the sub Rs 20,000 category in India can be seen as a move to align its strategy here with that of global standards.

Company CEO Tim Cook recently explained -- during a town hall session -- that people in emerging markets like India (and China) were willing to pay more for the latest technology (meaning better iPhones) so there was no reason to sell cheap, less feature-packed iPhones here. Killing the iPhone 4S and 5C could be the first step to this.

The move also comes at a time when Apple is looking to open its own retail stores in India. The company is already gearing up to open its first offshore development centre in Hyderabad. The 250,000 square feet centre will entail an investment of Rs 150 crore and create 4,500 job opportunities, the company said.

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